£850K Commercial Bridging Loan for Care Home Purchase and Renovation

A client approached us for fast, flexible funding to purchase a vacant care home in disrepair. With a tight four-week completion deadline, they needed a bridging loan to acquire the asset before beginning renovations to expand the property from 14 to 22 beds.

Clifton Private Finance secured an £850K commercial bridging facility at 0.9% monthly interest with a 75% LTV, exceeding the client’s expectations and paving the way for a smooth refinance to a long-term commercial mortgage.

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The Scenario

The client, an experienced healthcare operator, identified an opportunity to revitalise a neglected care home and expand its capacity. The bridging loan would fund the acquisition, while existing cash reserves would cover the renovation costs.

The client’s goal was to transition onto a term commercial mortgage once the refurbishment was complete and the care home operational.

Challenges

The main challenges were the tight completion timeline, with just three weeks from application to purchase, and the specialist nature of the property.

Vacant care homes are often viewed as high risk, limiting lender appetite. Additionally, many lenders restrict LTVs on such properties to around 60%, making the target 75% LTV difficult to achieve.

The Solution

We leveraged our extensive lender network to source a specialist commercial bridging provider able to work quickly and offer strong leverage.

The result was an £850K loan at 0.9% interest, on a 24-month term, with monthly servicing and 75% LTV agreed on day one.

We also structured the deal with a clear exit strategy, refinancing onto a commercial mortgage after the renovation, supported by indicative figures already approved by potential lenders.

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The Outcome

The deal completed within the strict timeline, enabling the client to meet their purchase deadline and move forward with the refurbishment without financial delays.

Not only did we outperform the client’s usual broker on both speed and rate, but we also delivered a solution many lenders would have considered too complex due to the property type.